European Zinc Ingot Price Show a Declining Trend at the Start of June 2023

At the beginning of June 2023, the price of Zinc Ingot showed a declining trend as the demand from the downstream automobile and construction sectors remained scarce. On the other hand, the supply of feedstock Zinc Ingot has increased as the European Zinc inventories remained on the higher edge despite weak demands. The surplus supply of Zinc Ingot from top suppliers continues to increase the inventories in the local market, but the demand remains low.

The supply of Zinc Ingot remained plenty in the European market as the import from major exporting countries like Peru, Indonesia, the US, Mexico, etc., remained high. The Indonesian government is still allowing the export of Zinc, despite the ban on major raw material export such as Bauxite, Copper, and many others, to improve its economic conditions. Furthermore, Cerro Lindo mines in Peru under NEXA Resources have resumed their mining operations after two weeks, as unusually heavy rainfall due to cyclone Yaku halted the extraction process and caused flooding in the lower level of mines. The Dominican workers are going to resume Zinc mining at Cerro de Maimón mine in the Dominican Republic after a strike lifted by workers that commenced on 15th May 2023 concerning improvement in pay and bonus of workers. This will lead to an increase in Zinc Ingot inventories furthermore if the demand remains short.

The demand for Zinc Ingot in downstream industries such as automobiles has continuously decreased. The European downstream electric vehicles sector has seen a continuous descending movement in spite of increased sales in the past months. Both the buyers and mills in the European market are holding back from trading Zinc Ingot in huge amounts as they are hoping for the price to fall further as the Zinc Ingot market is facing bearish sentiments from the construction and automotive industries. The downstream construction industry is currently facing stable demand as the peak summer season has slowed down construction activity, and the upcoming rainy season is also putting a halt in demand for Zinc Ingot from the construction sector.

According to ChemAnalyst, the price for Zinc Ingot is likely to face a bullish trend in the upcoming months as the downstream construction company will have upliftment by favorable weather conditions that will promote construction work, and the European electric vehicle industry is also going to finalize the long-term deals with Zinc Ingot manufacturers to increase the production of electric vehicles in the European market.